INTB 3355: Chapter 12
22 Cards in this Set
Front | Back |
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country screening
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using countries as the basis for market selection
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segment screening
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using markets segments as the basis as for market selection
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Market indicators
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Economic data used to measure relative market strengths of countries or geographic areas
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Market Factors
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Economic data that correlate highly with market demand for a product
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Estimation by analogy
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Process of using a market factor that is successful in one market to estimate demand in a similar market
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Cluster analysis
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Statistical technique that divides objects into groups so that the objects within each group are similar
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trade mission
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A group of businesspeople and/or government officials (state or federal) that visits a market in search of business opportunities
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trade fair
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A large exhibition, generally held at the same place and same time periodically, at which companies maintain booths to promote the sale of their products
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social desirability bias
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The custom of politeness toward everyone that can cause respondents to give answers calculated to please the interviewer rather than to reflect the respondent's true beliefs or feelings
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Market screening
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firms uses environmental forces to identify desirable markets
1)
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Environmental scanning
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firms scans world for changes in environmental forces that might affect it
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Selection of foreign markets
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basic needs
economic financial screen
political/legal screen
socio cultural screen
competitive screen
final selection
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Second screening - financial and economic forces
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reduces potential markets through analysis of financial economic forces:
-inflation trends
- currency exchange rates
-interest rates
-credit availability
- paying habits of customers
-rates of return o similar investments
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Trend analysis
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successive observations of a variable at regular intervals analyzed to establish regular patterns that are used for establishing future values
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Entry barriers
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Import restrictions, local participation requirements, local content restrictions, government-owned competition
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profit remittance barriers
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Restrictions on the repatriation of earnings, limits to FDI, inability to provide foreign exchange
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Policy Stability
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Political climate, government stability, public unrest
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Socio cultural forces screening - fourth screening
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-sociocultural factors are fairly subjective
-data are difficult to assemble, particularly from a distance
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Third screening
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entry barriers
profit remittance barriers
policy stability
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fifth screening- competitive forces
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To compete in countries with STRONG COMPETITION, management must:
Maintain a strategic presence where global competitors are, or
Enter a competitor's home market to distract attention
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Final selection of new markets
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Field Trip
Government-sponsored trade missions and trade fairs
Local research
Cultural issues
Technical difficulties
Research as Practiced
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two screening methods, reconsidered
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Conventional View:
-The world is organized along national lines
Need to Adopt an Expanded View, because...
-Multiple subcultures exist within nations
-Subcultures are similar across nations
The nation may no longer be the relevant unit of analysis
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